Accomplished Extension of ADECCO Group's Debt Maturity Duration
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In a move to extend its debt maturity profile and take advantage of favourable market conditions, a leading global HR services group has announced a successful refinancing of EUR 293 million of its outstanding notes.
As at the expiration deadline of April 6, 2011, the Issuer accepted for exchange or purchase all of the existing notes validly offered for exchange or tendered for purchase pursuant to the Offers. The Exchange Offers will result in EUR 167,000,000 in aggregate nominal amount of new notes being exchanged for existing notes.
The final pricing details for the Offers are as follows:
- 2013 Notes have a 2013 Offer Spread of 50 bps, a 2013 Offer Yield of 2.924%, an Exchange Price and Tender Price of 103.061%, Accrued Interest of 4.36%, and a New Issue Price of 99.453%.
- 2014 Notes have a 2014 Offer Spread of 80 bps, a 2014 Offer Yield of 3.546%, an Exchange Price and Tender Price of 111.551%, Accrued Interest of 7.33%, and a New Issue Price of 99.453%.
- The New Notes have a New Issue Spread of 1.40%, a New Issue Yield of 4.844%, a New Issue Price of 99.453%, and a New Issue Coupon of 4.75%.
The refinanced notes include EUR 165 million of its EUR 500 million 4.5% notes due 2013 and EUR 128 million of its EUR 500 million 7.625% notes due 2014. The new 7-year fixed rate notes due 2018 have a nominal amount of EUR 500 million with a coupon of 4.75%. The total aggregate nominal amount of new notes to be issued on the Settlement Date will be EUR 500 million.
In Q2 2011, the group will recognize a one-time expense of approximately EUR 10 million in connection with the exchange and tender offers. Based on the new debt maturity profile, the group updates its 2011 interest expense guidance and expects interest expense to amount to approximately EUR 70 million for the full year.
Société Générale and The Royal Bank of Scotland plc are acting as Joint Dealer Managers for the transaction. Lucid Issuer Services Limited is acting as Exchange and Tender Agent.
The worldwide leader in Human Resource services, the group is registered in Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN). The group is based in Zurich, Switzerland and offers a wide variety of HR solutions worldwide.
For more detailed information, please refer to the company's press releases, SEC filings (e.g., 8-K, 10-K), or debt restructuring reports from that time. For investor relations and press inquiries, please contact the Corporate Investor Relations and Corporate Press Office provided in the contact details.
- To bolster its financial position and capitalize on market opportunities, the HR services group considered temporary staffing solutions, outsourcing some job roles until the refinanced notes maturity.
- Investors were attracted to the group's favorable business prospects, as the successful refinancing reduced the company's permanent placement costs across various departments, ensuring a healthy long-term investment.
- With the extended debt maturity profile, the HR group aimed to allocate some savings towards investments in temporary staffing agencies, augmenting its overall finance strategy.
